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Raw Materials Study 2020 – Survey by INVERTO in cooperation with the Handelsblatt

Raw Materials Study 2020 – Survey by INVERTO in cooperation with the Handelsblatt

Although the corona pandemic has disrupted supply chains worldwide, few participants in the raw materials study are concerned about supplies. Our Raw Materials Study 2020 shows that global demand has fallen due to the crisis, which in turn has led to overcapacity and price reductions. But only 29% of the study participants were able to reduce their purchasing costs.

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Companies do not expect a major risk from supply problems

The issue of supply security is generally underestimated. Despite conscious risks in the supply chain, companies do not see any major danger from supply problems. Depending on the raw material, expectations of supply problems range from 0% to 12%. Yet, two thirds of the companies expect delays in the supply chain, 33% reckon with poorer planning of raw material supply. They see a greater risk of price increases – most likely for plastics and electricity.

COVID-19: The biggest challenges in the pandemic

COVID-19 countermeasures are only taken superficially. A more intensive and structured approach is necessary. Although 56% of the study participants have already established alternative suppliers in new procurement markets in the short term, long-term measures have only been taken by 14% so far.

Only a few companies benefit from low prices

Lack of or delayed reaction to low price levels on the raw materials market. 71% of respondents said they had not yet benefited from low raw material prices. Companies have also only been able to take limited advantage of the low crude oil price. Almost one third of the firms currently set other priorities in procurement. A more detailed analysis – including our recommendations for action – can be downloaded free of charge below.

Download the full results of our Raw Materials Study 2020 including recommendations for action:

  • Key results
  • General influencing factors and raw material management
  • Influence of COVID 19 on raw material markets and raw material procurement
  • INVERTO Recommendations for action

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